Lawson Products, Inc., a distributor of fasteners, tools, material handling products, services, and more to the MRO marketplace, recently announced the acquisition of Partsmaster.
Partsmaster, established in 1968, is a nation-wide industrial products supplier that specializes in tools, chemicals, welding, cutting tools, and more. The company also offers maintenance, repair, and operations (MRO) solutions, with annual sales of about $63 million. It serves 16,000 customers with over 200 sales representatives principally through a distribution center located in Greenville, Texas.
“This transaction is an important step in our continued growth strategy,” said Michael DeCata, president and CEO of Lawson. “We’re very excited about expanding our sales team and customer base further positioning Lawson as a leader in MRO vendor managed inventory services.”
Lawson will pay approximately $35.3 million plus the assumption of certain liabilities. It paid $2.3 million of the purchase price at closing and will pay the remaining $33.0 million in May 2021. Lawson will satisfy the deferred portion of the purchase price with cash on hand and, to the extent necessary, any remaining portion using its existing $100 million committed credit facility.
“Partsmaster is a strong strategic fit with a similar VMI business model, similar product margins, a complementary product offering and a passion for providing great service to customers,” added DeCata. “We welcome the Partsmaster team and look forward to working with them, sharing best practices and driving growth through our entire organization.”
Excluding integration costs, Lawson expects the acquisition to be accretive starting in fiscal 2021 and expanding further into 2022 as it becomes fully integrated.
“The entire Partsmaster team will greatly benefit from Lawson’s expanded product offering and North American distribution capabilities while Lawson will acquire a highly trained sales force along with a wide array of proprietary products to not only keep customers running, but also reduce their parts, labor and downtime costs,” said Partsmaster president, David Weiss.
This is the seventh and largest acquisition for Lawson in the last five years.
Filed Under: Fastener industry news
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